Retaining Savvy Customers

I have been with my web provider Lunarpages* since 2003, when I launched my (the web portal, now blog) Sensei Michael. Throughout the 4 years I've been with my provider, there's been hiccups (like when China blocked my original server) and other problems - but their staff has always been around to assist. They may not be the cheapest (but cheap enough for me) but the customer service aspect really won me over.

The latest story about Customer Service** from their blog tells a lot about what it means to keep customers. In this case, it was interesting that Company A was cheaper than Company B but the customer still kept on with Company B.

Company A used to be the service provider - and created no lengths of frustrations for the customer. Why then did the customer stick on with Company A for so long? Well, Company A has the monopoly in the area, so the customer has no choice. This is one important aspect of customer service all must learn - if you can make the change of service providers so painful (Micro$oft is one example) or near impossible (China Telecom!), you can still keep your customers even with horrible customer service! It's something worth thinking about.

Then Company B came along. The problems are still there (another lesson to learn for customers - don't assume that problems disappear when you change service providers), except that Company B makes the problems their problem and attempts to solve them to the satisfaction of the customer (in the case of Company B, they were resolved so well that the customer probably was not even aware there was a problem in the first place!).

Interestingly, I've also long thought over how the superior customer service scenario would play out here in Shanghai. Superior customer service only works on savvy customers (those whom relationship, value or branding appeal to them). When you have customers who are only looking at the bottomline (the lowest possible price), customer service may not mean anything at all. And trust me, there are a lot of them here.

And when you get customers who, by reason of limited financial ability, have no choice but to use your service - you've got a captive customer group whom you can afford not to provide good customer service, turn a deaf ear to their complaints, and still have the cash rolling in semester after semester. Now that sure is a wonderful business model for any businessman!

At least until a competitor matches your price and gives better service.

*A link to this wonderful web host - Lunarpages **Link to the article I referred to Customer Service

Article Source: http://www.content.onlypunjab.com

Michael Chan used to be a teacher, before he left to run a managed fund. When his business failed, he returned to teaching, and is currently a Department Head at the Shanghai Singapore International School. He constantly applies his business acumen to his job, to add value to his employer. His thoughts on K-12 education and on financial education can be found in his blog at www.senseimichael.com

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